[Federal Register Volume 87, Number 67 (Thursday, April 7, 2022)]
[Notices]
[Pages 20491-20492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07336]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-359, OMB Control No. 3235-0410]


Submission for OMB Review; Comment Request

Upon Written Request Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Rules 17h-1T and 17h-2T

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in Rules 
17h-1T and 17h-2T (17 CFR 240.17h-1T and 17 CFR 240.17h-2T), under the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
    Rule 17h-1T requires a covered broker-dealer to maintain and 
preserve records and other information concerning certain entities that 
are associated with the broker-dealer. This

[[Page 20492]]

requirement extends to the financial and securities activities of the 
holding company, affiliates and subsidiaries of the broker-dealer that 
are reasonably likely to have a material impact on the financial or 
operational condition of the broker-dealer. Rule 17h-2T requires a 
covered broker-dealer to file with the Commission quarterly reports and 
a cumulative year-end report concerning the information required to be 
maintained and preserved under Rule 17h-1T.
    The collection of information required by Rules 17h-1T and 17h-2T, 
collectively referred to as the ``risk assessment rules,'' is necessary 
to enable the Commission to monitor the activities of a broker-dealer 
affiliate whose business activities are reasonably likely to have a 
material impact on the financial or operational condition of the 
broker-dealer. Without this information, the Commission would be unable 
to assess the potentially damaging impact of the affiliate's activities 
on the broker-dealer.
    There are currently 235 respondents that must comply with Rules 
17h-1T and 17h-2T. Each of these 235 respondents are estimated to 
require 10 hours per year to maintain the records required under Rule 
17h-1T, for an aggregate estimated annual burden of 2,350 hours (235 
respondents x 10 hours). In addition, each of these 235 respondents 
must make five annual responses under Rule 17h-2T. These five responses 
are estimated to require 14 hours per respondent per year for an 
aggregate estimated annual burden of 3,290 hours (235 respondents x 14 
hours).
    In addition, new respondents must draft an organizational chart 
required under Rule 17h-1T and establish a system for complying with 
the risk assessment rules. The staff estimates that drafting the 
required organizational chart requires one hour and establishing a 
system for complying with the risk assessment rules requires three 
hours. Based on the reduction in the number of filers in recent years, 
the staff estimates there will be zero new respondents, and thus, a 
corresponding estimated burden of zero hours for new respondents. Thus, 
the total compliance burden per year is approximately 5,640 burden 
hours (2,350 hours + 3,290 hours).
    The retention period for the recordkeeping requirement for the 
information, reports and records required under Rule 17h-1T is not less 
than three years. There is no specific retention period or 
recordkeeping requirement for Rule 17h-2T. The collection of 
information is mandatory. All information obtained by the Commission 
pursuant to the provisions of Rules 17h-1T and 17h-2T from a broker or 
dealer concerning a material associated person is deemed confidential 
information for the purposes of section 24(b) of the Exchange Act.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    The public may view background documentation for this information 
collection at the following website: >www.reginfo.gov<. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to (i) >[email protected]< and (ii) David 
Bottom, Director/Chief Information Officer, Securities and Exchange 
Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, 
or by sending an email to: [email protected]. Comments must be 
submitted to OMB within 30 days of this notice.

    Dated: April 1, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-07336 Filed 4-6-22; 8:45 am]
BILLING CODE 8011-01-P


